The Following Is a Listing of Some of the Balance

question 14

Multiple Choice

The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Northview Company as they appear on the company's adjusted trial balance. $\begin{array}{lr}\text { Accounts Payable } & \$ 30,000 \\\text { Accounts Receivable } & 33,000 \\\text { Inventory } & 60,000 \\\text { Advertising Expense } & 36,000 \\\text { Cost of Goods Sold } & 267,000 \\\text { Delivery Expense } & 18,000 \\\text { Income Tax Expense } & 6,000 \\\text { Insurance Expense } & 3,000 \\\text { Rent Expense } & 36,000 \\\text { Sales Revenue } & 480,000 \\\text { Sales Discounts } & 33,000 \\\text { Sales Returns \& Allowances } & 57,000\end{array}$ Gross profit would be:

• A)$105,000.
• B)$111,000.
• C)$123,000.
• D)$213,000.

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Definitions:

Line of Credit

An arrangement by which a bank agrees to lend a specified amount of money to an organization upon request.

Non-recourse Loan

A type of loan where the lender's ability to recoup losses is limited to seizing the collateral, with no right to pursue the borrower's other assets if the collateral’s value is insufficient.

Principal

An amount of money that is loaned or invested, excluding any interest or profit earned on it.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreement.